United Fire Group posts higher second quarter earnings

United Fire Group on Tuesday reported higher net income for the second quarter that ended on June 30 when compared with the same period last year.

The Cedar Rapids insurer posted net income of $15.5 million, or 61 cents per share, for the second quarter, up 5.2 percent from $14.7 million, or 58 cents per share, for the same period in 2012. Total revenue rose 10.1 percent to $219.7 million from $199.6 million in the second quarter of 2012.

Randy Ramlo, president and CEO of United Fire Group, said the year continues to meet the  company's expectations.

"Rate increases remain strong compared to a year ago and policy retention was up slightly for the quarter, which we believe is evidence that we will be able to continue to achieve mid to upper single-digit rate increases for the remainder of 2013," Ramlo said. "We continue to see a fair amount of new business opportunities. New business pricing remains steady."

Net income for United Fire and Casualty totaled $13.2 million, or 52 cents per share, for the second quarter, compared with $13.4 million, or 52 cents per share, for the same period in 2012. Net premiums earned increased 10.8 percent to $170.5 million in the second quarter, compared to $153.9 million in the same period in 2012.

Catastrophic losses totaled $14.2 million, or 36 cents per share after tax, for the second quarter, compared with $12 million, or 30 cents per share after tax, for the same period in 2012. Year-to-date, catastrophic losses totaled $18.7 million, or 48 cents per share after tax, compared with $26.1 million, or 66 cents per share after tax, for the same period of 2012.

"Catastrophe losses were up slightly in the second quarter, but well within our expectations," Ramlo said. "We did experience numerous smaller catastrophe losses, but none of the current losses were of the magnitude of the Branson, Mo., EF 5 tornado or the rash of tornadoes in Alabama during the spring of 2012."

Net income for United Life Insurance totaled $2.3 million, or 9 cents per share, for the second quarter, compared with  $1.4 million, or 5 cents per share, for the second quarter of 2012. Net premiums earned decreased 2.1 percent to $15.8 million for the second quarter, compared with $16.2 million for the second quarter of 2012.